Mcchip Resources (MCS) AI Stock Analysis

• Market Cap: C$3.60M
• Dividend Yield: 7.94%
• Average Volume (3M): 373.00
• Price to Earnings (P/E): 1.2
• Beta (1Y): 0.44
• Revenue Growth: N/A
• EPS Growth: 422.62%
• Country: CA
• Employees: 4
• Sector: Industrials
• Sector Strength: 88
• Industry: Oil & Gas Energy
• EPS (TTM): 0.52
• Shares Outstanding: 5,710,096
• 10 Day Avg. Volume: 620
• 30 Day Avg. Volume: 373
• PEG Ratio: 0.11
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.23
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Mcchip Resources has strong financial performance with robust revenue and net income growth. However, technical analysis indicates bearish momentum, which is a concern. Valuation is a key strength due to a low P/E ratio and high dividend yield, making the stock potentially undervalued and attractive for income-focused investors.

Mcchip Resources Business Overview & Revenue Model

Company Description

Mcchip Resources Inc. (MCS) is a Canadian-based junior resource company engaged in the exploration and development of natural resource properties. The company primarily focuses on mineral exploration, aiming to identify and develop viable mining projects. Mcchip Resources operates within the mining sector and is dedicated to increasing shareholder value through strategic acquisition and development of mineral properties.

How the Company Makes Money

Mcchip Resources Inc. generates revenue through the exploration and development of mineral resources. The company identifies and acquires mineral-rich properties, invests in exploration activities to determine the viability and potential profitability of these sites, and develops them into productive mining operations. Revenue is primarily obtained from the sale of extracted minerals, either through direct sales to manufacturers and distributors or through partnerships and joint ventures with other mining companies. Strategic partnerships with larger mining firms can also provide funding and shared expertise, contributing to the company's earnings. Additionally, Mcchip Resources may earn income through the sale or lease of its exploration rights and properties to other entities interested in developing these resources.

Mcchip Resources Financial Statement Overview

Summary

Mcchip Resources faces operational challenges with negative EBIT and EBITDA margins, despite a one-time net income boost. The balance sheet remains sturdy with low leverage, but cash flow issues are concerning, particularly with negative free cash flow in the TTM period. The company needs to address operational inefficiencies to stabilize its financial performance.

Income Statement

The income statement reveals a challenging period with declining revenues and negative EBIT margins over recent years. The TTM data shows a net profit due to a significant one-time gain, but operational metrics like EBIT and EBITDA margins remain negative, indicating continued operational challenges. Furthermore, revenue has exhibited volatility, falling significantly from earlier periods.

Balance Sheet

The balance sheet is relatively strong, with a solid equity base and a low debt-to-equity ratio, indicating low financial leverage. Stockholders' equity has grown consistently, enhancing the company's equity ratio. However, the declining asset base and increasing liabilities over time pose potential risks.

Cash Flow

Cash flow analysis shows negative free cash flow in the TTM period, with operating cash flows unable to cover capital expenditures consistently. The operating cash flow to net income ratio is negative, indicating operational cash generation issues. Despite past periods showing some positive operating cash flows, the recent trend is concerning.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
490.86K	480.49K	560.20K	695.28K	528.60K	1.02M
	Gross Profit
463.26K	452.90K	546.18K	679.79K	527.31K	1.02M
	EBIT
-366.31K	-363.05K	-164.49K	-176.78K	-97.48K	392.62K
	EBITDA
-338.72K	-335.45K	-150.47K	-161.29K	-96.19K	392.62K
	Net Income Common Stockholders
3.32M	563.13K	-374.54K	1.23M	1.79M	333.24K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.32M	8.84M	8.28M	7.78M	6.42M	5.27M
	Total Assets
6.23M	10.34M	9.80M	9.65M	8.19M	6.98M
	Total Debt
508.80K	1.82M	1.56M	830.00K	632.01K	1.11M
	Net Debt
-93.85K	1.35M	647.73K	306.57K	179.37K	693.60K
	Total Liabilities
725.41K	2.10M	1.78M	1.02M	831.53K	1.31M
	Stockholders Equity
5.50M	8.25M	8.03M	8.63M	7.36M	5.66M
Cash Flow		Free Cash Flow
-320.91K	-149.10K	140.96K	121.56K	34.00K	113.71K
	Operating Cash Flow
-320.91K	-149.10K	140.96K	163.23K	55.26K	113.71K
	Investing Cash Flow
656.87K	-208.62K	-169.54K	-86.53K	593.77K	-731.36K
	Financing Cash Flow
-375.36K	-85.53K	420.20K	-5.91K	-614.34K	432.95K

Mcchip Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MCS, the sentiment is Negative. The current price of 0.63 is below the 20-day moving average (MA) of 0.75, below the 50-day MA of 0.72, and below the 200-day MA of 0.70, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 32.02 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MCS.

Mcchip Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCS	71 Outperform	C$3.60M	1.22	31.10%	7.94%	―	422.62%
Sector *	64 Neutral	$4.39B	12.06	5.17%	249.63%	4.03%	-11.04%
CBV	51 Neutral	C$2.65M	18.24	-3.93%	―	-1.89%	-300.00%
CBI	34 Underperform	C$3.46M	―	-36.85%	―	―	-53.09%
CRI	32 Underperform	C$2.18M	―	-253.61%	―	―	43.88%

Mcchip Resources Corporate Events

McChip Resources Declares $0.05 Dividend

McChip Resources Inc. has declared a cash dividend of $0.05 per common share, to be paid on December 19, 2024, for shareholders on record as of December 12, 2024. This move reflects the company’s ongoing assessment of its financial health and future prospects. The decision on future dividends will depend on various factors as evaluated by the board of directors.